Stocks extend sell off for worst week since June
Stocks fell Friday as Wall Street wrapped up one of its worst weeks in months and traders reacted to ugly earnings warning from FedEx about the global economy.
The three major averages suffered their fourth losing week in five, and the summer comeback rally looks increasingly like a bear market bounce. The Dow Jones Industrial Average declined 4.1% this week. The S&P 500 lost 4.8%, while the Nasdaq Composite dropped about 5.5%.
The economy to enter a ‘worldwide recession’?
FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the global economy.
The CEO’s pessimism came after FedEx missed estimates on revenue and earnings in its first quarter. The company also withdrew its full-year guidance.
The chief executive, who assumed the position earlier this year, said that weakening global shipment volumes drove FedEx’s disappointing results. While the company anticipated demand to increase after factories shuttered in China due to Covid opened back up, it actually fell, he said.
Meta shares fall close to their pandemic low
Meta shares dropped below the company’s pandemic nadir during the day on Friday and are down more than 60% for the year.
The Facebook parent company said in July that sales would decline for a second straight quarter.
Meta has lost 61% of its value over the past 12 months, by far the biggest slide among Big Tech stocks and more than double the drop in the Nasdaq Composite.
China beat expectations in August
Retail sales grew by 5.4% in August from a year ago, topping a Reuters forecast for 3.5% growth.
Fixed asset investment for the first eight months of the year also beat expectations, despite a greater drag from real estate.
On Friday, National Bureau of Statistics spokesperson Fu Linghui told reporters more than once that insufficient domestic demand is a significant problem.
Singapore to create up to 20,000 finance jobs in five years
Singapore aims to add as many as 20,000 finance jobs over five years as the government seeks to bolster areas including wealth management and sustainable financing.
The Asian financial hub is projected to add 3,000 to 4,000 net roles on average every year from 2021 to 2025, while the financial sector will grow by 4% to 5% per year in the plan unveiled Thursday by the Monetary Authority of Singapore.
Singapore exceeded the targets set in its previous five-year plan ended 2020, having created more than 20,000 jobs and attracted $2.56 billion in total fintech investments, MAS said.
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